Title
Consider a memorandum/resolution approving a Ground Lease Agreement at Skylark Field Airport with Aeroserve, LLC.
Body
DATE: June 4, 2024
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Authorize a ground lease agreement with Aeroserve, LLC, at Skylark Field
BACKGROUND AND FINDINGS:
Airport Staff have negotiated a lease agreement with Aeroserve, LLC, in order to lease vacant ground space at Skylark Field. The vacant land includes the former site of the Killeen Municipal Airport terminal building that was demolished in 2023. The Agreement requires Aeroserve to construct multiple hangars for the storing of aircraft and potential commercial aviation related operations. The term of the lease agreement is thirty (30) years, with two thirty (30) year renewal options, which will commence upon completion of construction of the first aircraft hangar.
As part of the Agreement, Aeroserve agrees to use the Premises solely for aviation-related purposes and grants Aeroserve the right to sublease hangars to various third parties for aviation-related purposes, provided that all such arrangements for subleases with a term greater than five (5) years will be subject to City approval.
Aeroserve, will also be responsible for the installation and use of all utility services to all portions of the land and for all other related utility expenses, including expenses required for the installation of meters. Aeroserve is also responsible for all maintenance and repair expenses related to the land and hangars that it constructs on the land.
This lease provides additional aircraft storage capacity and revenue for the Aviation Department and has the potential to attract aviation related businesses that would create jobs, generate economic growth, and increase property value.
Pursuant to Section 145 of the City Charter for the City of Killeen, the Lease Agreement will become effective thirty (30) days following the passage of the...
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